Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 23

Relevant owner: definition and joint tenancy treatment

Schedule 7 paragraph 23 defines who counts as a "relevant owner" for the purpose of calculating the sum of the lower proportions when a chargeable interest is transferred out of a partnership, and clarifies how joint tenancies are treated in that calculation.

• A person is a relevant owner if, immediately after the transfer, they are entitled to a share of the chargeable interest and, immediately before the transfer, they were either a partner or connected with a partner.
• Both conditions must be met: a post-transaction entitlement to part of the interest, and a pre-transaction link to the partnership.
• Where persons hold the chargeable interest as beneficial joint tenants, they are treated as if they held it as beneficial tenants in common in equal shares.
• This deemed equal-shares treatment applies for the purposes of both the sum of the lower proportions calculation in paragraph 22 and the relevant owner test in paragraph 23 itself.